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TMI Blog2017 (1) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... excise duty and also availed credit on inputs - The assessee can utilize this credit taken prior to 01/03/2008 for paying the duty on the products which have become excisable after 01/03/2008 - Decided in favor of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is not contesting the issue whether the process amounts to manufacture in the present appeal and is confining his challenge to whether the assessee is eligible for credit even though the process does not amount to manufacture. He relied upon the decision in Markwell Paper Plast Pvt. Ltd. Vs. CC&CE, Noida [2012(285) ELT 76 (Tri. Del.)] and submitted that the Tribunal in the said case had occasion to consider whether the process amounts to manufacture and also discussed whether the assessee is eligible for credit if the process does not amount to manufacture. He submitted that the said judgment was appealed by the Department before the Hon'ble High Court of Delhi and vide decision laid in CCE, Delhi-II Vs. Sheetal Mercantile (P) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not utilized the same. The said finished product has become excisable after 01/03/2008 and the assessee is liable to pay duty on these finished products. Therefore, it is possible for assessee to utilise the credit after 01/03/2008. I do not understand on what basis the original authority disallowed ₹ 2,03,462/- when the same officer held that credit of ₹ 26,93,931/- is eligible. I do not find any logic in allowing part of the credit and disallowing a portion of ₹ 2,03,462/- on the ground that it has not been utilized prior to 01/03/2008. The controversy on the issue whether the process is manufacture has been set to rest by the amendment brought forth in CETA, 1985. The assessee was under bona fide belief that the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view cannot be sustained as it is against the tenets of equity and justice. The department having accepted the excise duty on the final product cannot be permitted to deny Cenvat credit on the inputs used for the manufacture of the final product on such a technical plea. If such an argument is allowed to sustain it would negate the entire object of the Cenvat credit scheme which has been put in place with a view to protect the assessee from double taxation. Thus, on this count also, the impugned orders are not sustainable. In the said judgment, the Tribunal had categorically held that the assessee is eligible for credit even though the process does not amount to manufacture prior to the period 01/03/2008. Though Department filed appeal ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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